Moody's Investors Service downgraded the long-term debt rating on Englewood, Colo.-based Catholic Health Initiatives to "Baa1" from "A3" and downgraded CHI's variable-rate demand bonds backed by self-liquidity to "Baa1/VMIG2" from "A3/VMIG2," affecting approximately $5.7 billion of rated debt.
Moody's also affirmed the "P-2" short-term rating on CHI's commercial paper backed by self-liquidity.
The ratings downgrades are based on a number of factors, including CHI's continued weak operating performance across multiple markets and an increase in the health system's short-term debt which further pressures its liquidity needs.
The outlook is negative, reflecting CHI's persistent decline in operating performance since 2012.